Gasoline prices in Israel to rise Friday

The maximum price of government price controlled 95 octane unleaded gasoline at self-service pumps in Israel will rise on Thursday night at midnight September 1, 2022 by NIS 0.08 to NIS 6.94 per liter. The NIS 0.21 charge for service at pumps will remain unchanged.

This rise comes after Minister of Finance Bezalel Smotrich signed an order increasing the reduction in excise tax on fuel from NIS 0.89 to NIS 1.00 from September 1. However, the reduction will not fully offset the rise in gasoline prices, which stems from the weakening of the shekel and the rise in oil prices on world markets.

Estimates are that the Ministry of Finance will lose NIS 267 million in state revenue next month because of the cut and that the loss in state revenue over the past 18 months due to the ‘temporary’ cut in excise on fuel totals NIS 2.9 billion.

As “Globes” revealed earlier this week, in order to prevent the price of 95 octane gasoline rising above NIS 7, the government allocated NIS 1.1 billion in the 2023 state budget. However, this budget will have been used up within the next two months. The government is expected to prefer increasing the budget for the excise tax at the expense of widening the fiscal deficit.

Published by Globes, Israel business news – en.globes.co.il – on August 31, 2023.

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